Speed up advice changes say industry funds
Industry superannuation funds are pressing the Federal Government to speed legislative changes aimed at expanding access to affordable financial advice.
The Super Members Council (SMC) has released new modelling which it says highlights with fresh urgency the need to fast-track long-awaited financial advice reforms.
A report based on the modelling has claimed a ‘silver tsunami’ of 2.8 million Australians “is now racing towards retirement”.
“The report lays out the current complexity and rigidity of Australia’s retirement system – and illuminates how that complexity is a barrier to a simple and seamless transition into retirement for many Australians,” the SMC said.
“It also finds that around 700,000 Australians over 65 who are not working full-time still have their super sitting in taxed savings-phase super accounts, lowering their disposable income in retirement.
“It calls for urgent short-term reforms to prepare the super system for the silver tsunami, including a need to:
– Expand access to simple, affordable financial advice and digital tools.
– Enable safe and effective data sharing with Government to enable funds to optimise incomes and offer retirement income dashboards to their members.
– Support Smart Retirement Pathways and suggest the best retirement income solution for them. – Preserve flexibility and retiree choice.
– Fix issues that lead to dual super accounts for retirees.
It also proposes several bolder directions for longer term reform and further consideration including:
– Simplifying a transition to tax-free income, including considering automatically removing tax from accounts at age 65 for eligible members.
– Rethinking minimum drawdown requirements for Australians with low super balances so poorer retirees can also access the benefits of moving into the tax-free retirement phase.
– Strengthening consumer protection by applying a quality filter on all retirement products.
The SMC said the report also dispelled the persistent myth that most Australian retirees are underspending their super and, instead, showed that drawdown are now typically higher than the minimum amounts required.
“In 2024–25, around 64% of tax-free retirement account holders (two in every three retirees) withdrew above the minimum, with this proportion even higher for those with less than $50,000 in super (77%).”
No mention of Real Advisers to get BS red tape reductions.
SMC just wants BackPacker FUM sales agents approved.
Like Ronald McDonald opining on nutrition.
The SMC should be quiet.
Mulino better get moving, his masters at the union funds are getting upset how long they have to wait to give poor quality, unqualified and conflicted advice. If the union funds can’t get him moving no one can.
I’ve told 3 potential clients this week that their Industry Super Fund customer service is so terrible I want nothing to do with them. Go back and ask why they don’t want to deal with Advisers. I said I appreciate you’ve got a lot of money, and I can add a lot of value amounting to tens of thousands in the first year alone,… but I’d rather slam my fingers in a car door than deal with your frequently complained about Industry Super Fund, that will blow my costs out of the water and make it so expensive to deal with.
If the Government were serious they’d make life easier for existing Advisers.
I can see why they think they might want to do things in-house but I can gurantee it’s going to backfire.